Domino’s Pizza Inc. (DPZ, Financial) reported its fourth-quarter and full-year 2018 financial results before the market opened on Feb. 21. The company registered weaker-than-expected earnings as a result of disappointing same-store sales in the U.S. as well as stiff competition from rivals and delivery services.
Nonetheless, CEO Ritch Allison said he was pleased with the company's performance, which "capped a very strong 2018."
"Our long-game approach, driven by fundamentals and the finest franchisee base in QSR across the globe, continues to pace the industry - and we are excited to execute our global strategy in 2019 and beyond," he said.
Snapshot of the quarter
The pizza chain reported earnings of $2.62 per share for the quarter, which climbed 25% from the prior-year quarter, but fell short of the Street's estimates of $2.69. Revenue grew 21% to $1.08 million, but fell shy of expectations of $1.1 billion.
While U.S. comps jumped 5.6%, global comps inched up 2.4%.
Expansion
Having reported soft sales and weaker-than-expected earnings, Domino's said it opened 560 net new stores in the fourth quarter, comprised of 125 in the U.S. and 435 internationally.
The company opened 1,058 new stores during the year, of which 258 were in the U.S. and 800 were international.
Forecast
Domino's does not provide an outlook on a quarterly or annual basis. Instead, providing guidance for the next three to five years, the pizza chain said it projects global retail sales growth of around 8% to 12%. U.S. same-store sales are projected to grow 3% to 6% over the same period.
Disclosure: I do not hold any positions in the stocks mentioned.
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